Gartner Magic Quadrants is a research methodology and visualization tool used to monitor and evaluate the progress and position of a company in a distinct, technology-based market.
Magic Quadrants research reports can be valuable tools for investors searching for a company that fits their needs. They are also helpful for businesses looking for competitors in their market to gain the upper hand possibly.
Rather than merely displaying stats or ranking companies in lists, Magic Quadrants uses a two-dimensional matrix to demonstrate the strengths and distinctions between businesses. The presentation divides competing businesses into four specific sections, based on both completeness of vision and capacity to achieve it:
The Four Quadrants
Score low in both the completeness of vision and ability to execute, these companies may do well in a market segment but cannot outperform more significant vendors. They are most likely focused on functionality, a specific area, or are a new business.
They know how the market will evolve and are potentially innovative but may be unable to execute these visions. Typical for early-market businesses, visionaries in more mature markets are usually either smaller businesses trying to compete or larger companies trying to escape a rut.
They can execute but may lack substantial vision. Challengers tend to be more significant vendors in mature markets who do not want their current plan disrupted. However, they can become leaders if their vision develops.
They score high on the completeness of vision and the ability to execute; leaders tend to be big companies in mature markets, have a considerable customer base, and are highly visible in that market. Leaders have a large amount of clout over a specific market and even can affect the overall direction of their market.
Although it may seem as if the companies in the “leaders” category are consistently the best choice, Gartner advises users to explore all quadrants as businesses in every category have unique strengths and weaknesses that you should consider. It is also noteworthy that Magic Quadrants is designed to assist in narrowing down a vendor search rather than tell a customer what vendor they should select.
Magic Quadrants can also be helpful for vendors who wish to analyze their competition. Magic Quadrants summarizes a market’s top businesses, showing their strengths and weaknesses. Competing companies can then use that data to determine their competitor’s weaknesses and improve their business, thereby giving them an advantage in the market.
How Do I Use a Gartner Magic Quadrant?
Gartner Magic Quadrants can be used as a first step to understanding the technology providers you may be considering for a particular investment opportunity.
Remember that focusing on the leaders’ quadrant isn’t always the best measure, even though there are good reasons to consider market challengers. For example, a niche player may support your needs better than a market leader, depending on how the provider aligns with your business goals.
A Summary of How a Gartner Magic Quadrant Works
A Magic Quadrant delivers a competitive graphical positioning of four types of technology providers in specific markets with high growth and distinctive provider differentiation:
- Leaders perform well against their current vision and position themselves well for tomorrow.
- Visionaries have a keen understanding of where the market is going and may have a vision for changing market rules; however, they do not execute well.
- Niche Players are either successful at focusing on a small segment or are unfocused and do not out-innovate or surpass others.
- Challengers can execute well today and may dominate a large segment but do not display an awareness of market direction.
How Does It Help Pick the Right ERP Solution for Your Business?
ERP industry analysts like Gartner and Mint Jutras provide a trustworthy and factual analysis of ERP vendors and products. They have keen insight into the industry’s current trends and future projections and can give valuable perspectives and unbiased opinions that you won’t get from prospective vendors.
They are highly regarded and trusted within the ERP industry, and their data is frequently featured or cited in journals and other studies.
Using Gartner Magic Quadrant, you can get a non-biased, third-party view of the ERP competitive landscape. You can familiarize yourself with the solutions available, how they compare and how they might fit your requirements. In a crowded market, there are multiple options.
Give us a call, and we will help you select the right one for you and your business needs.